Second-quarter profits at fragrance supplier International Flavors & Fragrances Inc. declined 14.5 percent to $67 million, or 83 cents a diluted share, from $78.4 million, or 87 cents, in the same period a year ago, on higher interest expense related to borrowings for an accelerated share repurchase program last year.
IFF, which posted results Wednesday night, reported that, excluding special items like a tax adjustment and employee separation costs, adjusted earnings per share for the quarter ended June 30 were 81 cents versus 72 cents a year ago. Wall Street analysts were expecting earnings per share of 80 cents, according to Yahoo Finance. Quarterly revenues were $636.1 million, up 10.9 percent from $573.7 million last year, a 4 percent gain in local currencies.
Employee separation costs of $3.4 million were primarily due to the departure of IFF’s senior vice president and chief financial officer, Douglas J. Wetmore, who stated last month he would step down to pursue other career opportunities. The company named Richard A. O’Leary, 48, as its interim cfo on Thursday.
Second-quarter interest expense more than doubled to $18.5 million from $8.4 million in the year-ago period, a 120.9 percent jump, sending pretax earnings down 10 percent to $87.2 million from $97 million last year.
While sales at IFF’s fragrance business unit were up by 8 percent during the second quarter to $346.3 million, a 1 percent uptick in local currencies, chairman and chief executive officer Robert A. Amen noted during a conference call with analysts that North America remains a challenging market. North American fragrance sales declined by 11 percent, which was an improvement from a 23 percent drop during the first quarter.
By region, fragrance sales were up 18 percent in greater Asia, 15 percent in Europe and 14 percent in Latin America.
“Our non-U.S. sales in the second quarter amounted to 75 percent of total revenue, with more than one-third coming from the world’s emerging markets,” said Amen.
Fragrance accounted for 54.4 percent of quarterly sales, while the remainder was generated by the firm’s flavors business.
For the first half, profits were down 12.8 percent to $123 million, or $1.52 a diluted share, from $141.1 million, or $1.56, last year. Interest expense totaled $36.8 million, a 120 percent increase from $16.7 million, while sales reached $1.23 billion, an 8.2 percent rise from $1.14 billion during the prior year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast